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1. A cafe latte was offered for sale at ​$4.35 at West Store. At East​ Store,...

1.

A cafe latte was offered for sale at ​$4.35 at West Store. At East​ Store, the regular selling price of a similar cafe latte was $5.59. What rate of markdown would East Store have to offer to sell the cafe latte at the same price as West​ Store?

2.

A wholesale company prices its inventory at ​$150,477. If the original price of the items was ​$232,100​, find the rate of markdown on the original price.

3.

​Luigi's Restaurant offers a​ "buy one dinner get the other dinner for half​ price" sale. The​ "half price" refers to the​ lower-priced dinner. A customer orders a pasta dinner with a regular price of $24.00, and a chicken dinner with a regular price of $12.00.

​(a) What was the overall markdown value at which the dinners were​ sold?

​(b) What was the overall markdown rate at which the dinners were​ sold?

Solutions

Expert Solution

1. A cafe latte was offered for sale at ​$4.35 at West Store. At East​ Store, the regular selling price of a similar cafe latte was $5.59. What rate of markdown would East Store have to offer to sell the cafe latte at the same price as West​ Store?

Markdown = 1 - West Store Price / East Store Price

Markdown = 1 - (4.35 / 5.59)

Markdown = 22.18%

2. A wholesale company prices its inventory at ​$150,477. If the original price of the items was ​$232,100​, find the rate of markdown on the original price.

Markdown = 1 - New Price / Original Price

Markdown = 1 - (150477 / 232100)

Markdown = 35.17%

3.​Luigi's Restaurant offers a​ "buy one dinner get the other dinner for half​ price" sale. The​ "half price" refers to the​lower-priced dinner. A customer orders a pasta dinner with a regular price of $24.00, and a chicken dinner with a regular price of $12.00.

​(a) What was the overall markdown value at which the dinners were​ sold?

​overall markdown value = Total Original Price - Total Offer price

​overall markdown value = 24 + 12 - 24 - 6

​overall markdown value = 6

(b) What was the overall markdown rate at which the dinners were​ sold?

overall markdown rate = 1 - Total Offer price / Total Original Price

overall markdown rate = 1 - (30 / 36)

overall markdown rate = 16.67%

jeff jeffy answered 1 year ago
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